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The important task before every manager is to secure optimum performance from each of his subordinates. The performance of the subordinate, in turn, is determined by his ability to work and the extant to which he is motivated. Motivation is the process of inducing and instigation the subordinates to put in their best. Motivation is influenced significantly by the needs of a person and the extent to which these have been fulfilled. To motivated the subordinates, the manager must, therefore, understand their needs.

The term motivation has been derived from the word motive. Motive is the eminent management thinkers:

1. Motivation means a process of stimulation people to action to accomplish desired goals- W.G.Scott. 2. Something that moves the person to action and continues him in the course of action already initiated- Robert Dubin. 3 Motivation is the process of attemption to influence others to do your will

through the possibility of gain or reward Edwin B.Flippo. 4 Motivation is a general inspirational process which gets the members of the team to pull their weight effectively to give their loyalty to the group to carry out properly the tasks that they accepted and generally to play an effected part in the job that the group has undertaken- E.F.L.Brech. 5 Motivation refers to the way in which urges, drives, desires, aspirations, strivings or

needs direct, control or explain the behaviour of human beings McFarland.

It is clear from the above definitions that motivation is the process of generation enthusiasm among the subordinates so that they work to their maximum potentials in orders to achieve the goals of the enterprise.

Nature and characteristics of Motivation

The following salient features of motivation explain in nature: 1. Motivation is a psychological concept- The needs of person influence his behaviour. A subordinate, whose needs have been fully satisfied, feels mentally relieved. The quantum of tangible benefits provided, e.g., higher pay to a subordinate may not actually determine mental satisfaction. Even a word of appreciation from the manager may provide greater mental satisfaction to an employee and induce him to work harder. Motivation, thus, has something to do with the psychology of the employees. 2. Motivation is always total and not piece meal- it means that a person cannot be motivated in installments. An employee will not be motivated if same of his needs are partly satisfied. For example, if an employee awaits a transfer to his native place and is also due to get his promotion, he will not feel motivated if only one of the benefits is sanctioned. It is, therefore, the duty of the employer to grant any benefit to his employees fully as and when it is due. 3. Motivation may be financial or non- financial- An employee may be motivated through financial or non-financial incentives. Financial incentives are the monetary benefits provided to an employee in the from of higher pay, bonus, commission etc., non- financial incentives are the non-monetary benefits such as greater decisionmaking authority, better designation and so on. 4. Method of motivation may be positive as well as negative- Many people think that the method of motivation should always be positive. It may even be negative. The method is positive if it is in the form of higher pay greater authority, better designation etc. the method of motivation is negative in the following cases:

i) ii) iii) iv)

Issue of Memo to a worker showing negligence. Placing a worker who is shirking duties under suspension. Pay- cut. Imposing fives or penalties for violating rules and regulations in the work place etc.

5. Motivation is a continuous process- Man is a wanting animal. As soon as one need is satisfied another appears in its place. This is an unending process. Motivation, therefore, is not a time-bound process. In the work place, an employee needs to be motivated as along as he is in employment.

Importance of Motivation
Motivation, as a tool of direction, is important in view of the following reasons: 1. Inducement of employees- In the workplace, motivation is important to induce and employee to contribute to his maximum capabilities. Every employee has certain unfulfilled desires. The employer, by fulfilling the needs of the employee, motivates him to do his best. 2. Higher efficiency-Well- motivated employees put in maximum efforts in discharging their duties. This leads to higher output and thereby reduces the average cost per unit produced. Optimum output and lower cost is what is essential to achieve maximum efficiency. 3. Optimum use of resources- Motivated employees do not shirk their duties. It is, therefore, possible to make optimum use of the enterprise resources, particularly, materials and machines. The employees also do not remain idle during working hours. As a result, there is no loss of labor hours. 4. Avoidance of loss due to mishandling and breakage- Properly motivated employees are always careful in their work. They do not show negligence. As a result,

loss due to mishandling of machines and equipment and due breakage will certainly be avoided. of machines and equipment 5. No complains and grievances- Well- Motivated employees do not make unnecessary complaints about anyone or anything. They like their job and the organization. As all their needs are fulfilled by their employer, they hardly have any grievance. 6. Better human relations-When an organization has properly motivated staff, there will be better inter- personal relationships. The superiors trust their subordinates and vice versa. There is also greater co-operation among the employees. 7. Avoidance of strikes and lock-outs-Employees resort to shrike only when their demands are not conceded by their employer. The employer will be forced to declare lock-out (temporary closure of the business establishment), when he is unable to avert strike by workers. In an organization, where the management is always ready to fulfill all the needs of the workers, there will hardly be any need for the workers to resort to strike and for the employer to declare lock-out 8. Reduction in labour turnover Labour turnover is the ratio of workers leaving the organization the average number of workers working during a given period of time. Workers leave their organization in view of any of the following reasons:

i) ii) iii) iv)

If their pay benefits are not adequate. If they find their job monotonous. If their work is not recognized. If the inter-personal relationship is poor and so on.

But if the management is always ready to fulfill all the genuine needs of the employees and the latter are always properly motivated, the rate of labour turnover is bound to be low.

Process of Motivation

The process of motivation involves the following stages: 1. Recognition of an unfulfilled need 2. Finding the way out to satisfy the same 3. Fulfillment of the need and 4. Discovery of new need.

These various stages have been explained below:

The first stage in the process of motivation is that an individual has to recognize or identify his unfulfilled needs. He cannot hope to fulfill all his unfulfilled needs at a time. He must have priorities. For example, an employee who has just been inducted into an organization has to learn his job thoroughly. In the first few months of his service, he has to make all the necessary efforts to enrich his job knowledge. He must undergo induction and on- the-job training provided by the employer. After learning the job thoroughly, he must perform to the satisfaction of the management. Only then the management would give security of service. The management cannot retain him if his performance is far below the expected level. Thus, it is clear that the immediate need of a new recruit is to learn the job well and thereafter he may think of job security. The needs of the workers working at different levels in the organization will certainly be different. For example, if a worker has served the organisation for a organisation for a longer period of time, he may, probably, be expecting promotion to a higher post, another worker may be awaiting a transfer order to his native place and so on.

Finding the way out

Once the most urgent need out of the various needs of a person has been identified, the next step is to find out the way by which it can be fulfilled. A new recruit, as

mentioned above, has to strive hard to learn his job thoroughly. Otherwise, he cannot think of job security. Similarly, an employee awaiting promotion should have gained enough experience and proved his worth to the management. An employee awaiting transfer, may be voluntary, should have a valid reason for it.

Fulfillment of the need

Need fulfillment depends mainly on the credentials and performance of the employee. The management will be keen to regularize the service of a new recruit if he has proved himself in the training period. Likewise, if an employee has served the organisation for a considerable period of time and has a good record of performance, the management should come forward to grant him promotion.

Discovery of new need is fulfilled, another will appear in its place. A new recruit, whose service has been regularized by the management, may start thinking of promotion and other career advancement benefits. To attain the same, he has to equip himself as per the rules of the concern.

Financial and non-financial incentives

Incentives are noting but the inducements provided to employees in order to motivate them. These may be of two types: i) Financial incentives and

ii) Non-financial incentives.

Financial incentives involve money payments by the employer- either directly or indirectly. Higher wages and salaries, bonus, profit-sharing, commission, increment etc., are direct financial incentives. Provision of high quality furniture, subsidized food, separate telephone, air-conditioner, water cooler etc., is examples of indirect financial incentives.

Non-financial incentives do not involve money payments. These are also important in motivating employees. These are: 1. Job security- Nothing can motivate a worker, appointed temporarily, better than provision of job security. Even if a temporary worker puts in greater efforts, lack of job security will always pose a threat. If such a worker is given job security, he will be ever grateful to the management. 2. Challenging work- Workers, who are dynamic in nature, do not show preference for routine jobs. They are always ready to accept challenging assignments. It is , therefore, the duty of the employer, to understand the capabilities of every individual in the organisation and accordingly assign him work. If a conservative person is

given a job that requires a dynamic approach, he may not have any motivation to take it up. On the other hand, if a dynamic person is given a routine job, he too would not feel induced. 3. Recognition- It is important that the employer recognizes hard work. Even a word of appreciation from him would motivate the employees to maintain the same level of performance or do even better. Recognition need not necessary be in the form of tangible benefits to employees. It may be any gesture from the employer which should come at the right time. 4. Better designations- The designation of an employee is yet another motivating factor. Employees do show preference for certain designations. A salesman, for example, would like to be designated as a sales executive. 5. Opportunities for advancement- There should never be a stagnation point for any employee during the prime time of his career. The employer must always provide opportunities for his employees to perform well and move up in the hierarchy. 6. Participation in decision-making- Another non-financial incentive stimulates any employee is his involvement in certain crucial decisions. For example, if the management decides to buy new machinery for the factory, the workers viewpoints may be secured before making the final decision. The management should avoid unilateral decisions on such matters.


Competition- The management can encourage healthy competition among the employees. This would, certainly, motivate them to prove their capabilities. The management can also rank the employees according to performance. Such of those employees who have performed very well may be given merit certificates.


Job rotation- By job rotation we mean that the employees will be exposed to different kinds of job. This certainly would break the monotony of employees, for example, in a bank an employee may work in the savings Bank Section for sometime after which he may be posted to the cash section. Such a change not motivates the employees to perform well nut also prepares him to be versatile.

Theories on motivation
Many experts have developed different theories on the concept of motivation. Popular ones are given below: 1. Maslows need hierarchy theory; 2. McGregors X and Y theories. 3. Ouchis Z Theory. 4. Herzbergs Two-Factor Theory. 5. McClellands Need Theory. 6. Vrooms Expectancy Theory.

Each of these theories has been discussed in detail below;

Maslows Need Hierarchy Theory

Abraham H.Maslow, a psychologist, developed a theory called the Need Hierarchy Theory it is one of the oldest theories on motivation. Maslow was of the view that human behaviour is directed towards the satisfaction of certain needs. He classified human needs into five categories and arranged the same in a particular order as given below; i) ii) iii) Physiological Needs Safety Needs Social Needs

iv) v)

Self- actualization Needs and Esteem Needs.

Maslow regarded the first three (physiological, Safety and social needs) as lower order needs and the remaining two (self-actualization and Esteem Needs) as higher order needs

1. Physiological needs- These are the primary or the basic needs of a person that must be fulfilled. These include, among others, food, clothing and shelter that are vital for the survival of mankind. A person cannot think of recognition or status when his not able to earn adequately to satisfy his basic needs 2. Safety needs-The safety or security needs emerge once the basic or physiological needs of a person are fulfilled. Job security is one such need. people, generally, prefer secured jobs. Similarly, every employee wants to contribute to provident fund, insurance and such other schemes that protect his interests particularly in his old age when he cannot work and earn. 3. Social needs- At this stage, a person wants friendship, companionship, association, love and affection of particularly those with whom he mingles often. In fact, it is for this reason that informal groups are formed within a formal organisation. In the living place he may desire to have the friendship of his neighbors. These days people live in flats and it is common to find an association in every apartment. These associations are formed by the owners to look after common amenities and or the sake of peaceful co-existence. 4. Esteem needs These needs arise in view of a persons desire to have his ego satisfied. The satisfaction of these of these needs gives a person the feeling that he is above others. It gives a person self-respect, self- confidence, independence, status, recognition and repudiation. Same people show preference for luxury cars, expensive

jewels and so on not just because they can afford it but also due to the fact that possession of such goods satisfies their ego. 5. Self- actualization needs-According to Maslow, a person, who reaches this stage, wants to achieve all that one is capable of achieving. In other words, a person to his potentials. A professor may, for example, author books. A singer may compose music and so on. The desire to excel need not necessarily is in the flied one is attached to. It can be in some other sphere also. For example, an actor or actress may excel in polities

Evaluation of Maslows Theory

The following are the key points of Maslows theory: 1. Human needs arise in a particular sequential order and not at random 2. Safety needs are not important until the physiological needs are satisfied. 3. Once a need is satisfied, it ceases to be a motivating factor. 4. There can be a limit to physiological and safety needs but not to social, esteem and self-actualization needs.

The criticisms of Maslows theory are given below:

1. The order of need may not always follow the sequence suggested by Maslow. The esteem and self-actualization needs of a person may sometimes be satisfied better than his safety and social needs. 2. Maslow has given a classification of general human needs rather than the specific job-related needs of workers. 3. Maslow has not explained the relationship between the satisfaction of certain needs and its impact on productivity. 4. It is no correct to assume that certain higher order needs become dominant only after the preceding level needs have been fully satisfied.


By splitting the human needs into different categories the theory suggests that motivation can be a piecemeal exercise which is not correct.

McGregors and Y theories

Douglas McGregor developed two theories on motivation that explain the positive and negative qualities of individuals. He gave the theories the names X theory and Y theory. These theories have been discussed below:

X Theory
Theory X is negatives or pessimistic in approach. It is based on the following assumptions: 1. People, in general, dislike work. They shirk their duties and are basically lazy. 2. Most people are unambitious. They do not voluntarily accept any responsibility. 3. Most people lack creativity. They show no preference for learning anything new. 4. Satisfaction of physiological and safety needs alone is important for most people. Workers in general are only bothered about their salary, job security and such other extrinsic factors. 5. While at work, an employee needs to be closely supervised and watched. Theory X does not want managers to involve workers in the decision- making process. It expects the workers to work as per the directions of the managers. Y theory Theory Y is positive or optimistic in its approach. It is based on the following assumptions. 1. People are not averse to work. Given the proper working conditions the workers would do their work with the kind of enthusiasm they show for their other activities like playing and eating. 2. Workers are ambitious and they do come forward to accept responsibility. 3. Workers do have the potentials to be creative. If the management has a positive outlook, it will certainly encourage the workers to display their creative ideas and skills.

4. It is not correct to assume that only satisfaction of physiological and safety needs is impotent for most workers. The workers do many things who want to work to their maximum capabilities. 5. Workers need be directed and closely supervised. They are good in what is called self-direction.

Distinction between Theory X and theory Y

Theory X 1. People, in general, have an inherent dislike for work. Theory Y 1. People love to do their work provided they are given the proper

environment. 2. Most people are not ambitious and do 2. not voluntarily accept any responsibility. With proper motivation, people

outlook, it can certainly be made accept responsibility.

3. people, in general, lack creativity.

3. if the management has a positive outlook, it can certainly encourage the

workers to display their creative ideas and skills

4. Satisfaction of physiological and safety 4. Workers do many things to satisfy their needs alone is important. ego and also to display their potentials.

5. Close supervision is necessary.

5. workers are good at self-direction.

Evaluation of X and Y theory

The two theories X and Y bring out the two extreme qualities of a person. Theory X talks about the negative qualities alone and Theory Y talks only about the positive aspects. Practically speaking, no person is either too good or too bad. Every person has his or her own strong and weak points. By providing the right kind of environment and with proper motivation any individual can be made to perform well.

William Ouchis Z Theory

William Ouchi, a Japanese management expert developed a theory on motivation. He gave ht name Z theory to it. The proposals of Ouchi in his Z theory are given below:

1. Lifetime employment should be g ranted to all employees in order to establish a strong bond between them and the enterprise. Retrenchment of workers should not be resorted to event in times of advise business conditions. Instead, the shareholders must be prepared to dividends. 2. In the matter of employee promotion. Ouchi favors to work with their superiors on certain specific projects. Financial incentives would motivate the employee only in the short-run. 3. To motives employees, they must be made to work with their superiors on certain specific projects. Financial incentives would motivates the employees only in the short- run

4. Employees must be involved in the process of decision- making, particularly, on matters affecting their interests directly, such an involvement would induce them to work for the implementation of the decisions with lot of enthusiasm.

5. Within the enterprise employees must be frequently shifted from one job to another. This would make them understand the significance of each job.

6. There should be greater emphasis on co-operation and sharing of information and resources among the personnel in the organisation rather then on formal authority responsibility relationships.

7. The mutual relationships between the individual in the organisation must be based on trust, openness and co-operation.

8. For the sake of satisfying multiple employee needs, the work environment must be made stable.

Criticism of Z Theory
The following adverse remarks have been made against the Z theory 1. The theory is based on the Japanese management practices that are very much related to the culture of Japan. Such practices may not be successfully applied in other parts of the world. 2. The theory does not provide any information as to at what stage it may be applied in any organisation. 3. There is lack of evidence to confirm the practical of he theory

Herzbergs Two Factor Theory

Herzberg classified the factors influencing human needs into two categories. They are: i) ii) Hygiene Factors and Motivational factors

Hygiene Factors
According to Herzberg, hygiene factors do not actually motivate a person but their absence will lead to dissatisfaction. These factors are also known as extrinsic factors or

maintenance factors they help to maintain a reasonable level of job satisfaction among the employees. These are: i) ii) iii) iv) v) vi) vii) Company policies and Administration Type of supervision Inter-personal relationships Working conditions Salary Job security and Status

The maintenance factors are known as hygiene factors as they influence the mental framework of the employees. Motivational Factors

The motivational factors are also known as intrinsic factors. According to herbier, the presence of the intrinsic factors will motivate the employees but their absence will not lead to dissatisfaction. These are;

i) ii) iii) iv) v) vi)

work itself achievement recognition advancement growth and responsibility

Herzberg calls upon managers to use motivational factors to induce the employees to perform well.

Criticisms of Herbergs theory

1. The view of Herzberg that extrinsic factors such as salary, working condition etc., do not motivate employees has been criticized by many. 2. The critics also pointed out that there is no guarantee that satisfied workers would strive to increase productivity. 3. The terms satisfaction and dissatisfaction cannot be used as absolute measures. It is possible that an employee who is satisfied with one aspect of work may not be happy with another. For example, an employee who is happy with his job may feel dissatisfied when his work does not get proper recognition.

McClellands need theory

McClelland developed a theory on motivation by identifying three needs that induce people to work. These are: i) ii) iii) iv) Achievement need, Affiliation need and Power need Let us now see each of these.

Achievement need
In any work place, only a few people will always have the desire to achieve. These few people, according to McClelland, exhibit the following characteristics:

1. They set goals that are neither impossible nor too easy to attain. 2. These people are indifferent to rewards. They do not work for money or recognition. They feel satisfied when they solve a certain problem or achieve a certain goal. 3. People with a desire for achievement always seek feedback information on their performance to assess themselves.

4. Further. These people will always be thinking of the task they have undertaken and the ways of accomplishing it successfully.

Affiliation need
People with affiliation need want to be in the company of other. It is for this reason that informal groups are formed within a formal organization. The need for affiliation may be without any ulterior motive like financial help and such other obligations.

People with similar tastes, beliefs and values often come together to form informal groups. The members of the informal group may discuss not just personal matters alone but may utilize their association to find solutions to some of their workrelated problems.

Power need
Power may be defined as the capacity of a person to influence others. Such a capacity may accrue to a person by virtue of his personality traits-his knowledge, skill, intelligence and so on. The official right of a person may also give him the capacity to command or influence others. For example, in the work place, the manager has the official right to influence his subordinates. The official right is what is known as authority.

Limitation of the need theory

The following are some of the limitations of the need theory:

1. The theory does not anything about what can be done to motivate workers. 2. It fails to explain the relationship between the level of motivation and productivity.

3. The theory has relevance only of those who have the desire for achievement, affiliation or power. There may be many persons in an organization who may just carry out the tasks assigned to them without having any desire for achievement, affiliation or power.

Vrooms Expectancy Theory

Vroom developed a theory on motivation called the expectancy theory. He tried to explain motivation through the following concepts:

i) ii) iii)

Valence, Expectancy and Instrumentality.

According to Vrooms theory, motivation is the sum of the product of valence, expectancy and instrumentality. That is, Motivation = Valence Expectancy Instrumentality

Valence refers to the strength of a persons desire for a particular outcome. For example, a salesman who desires a good amount of commission from his company has to naturally achieve a high sales target. The first outcome desire, namely, commission. Attainment of sales target thus acquires a positive valence by reason of its relationship with the salesmans commission. The salesman, therefore, will be motivated to attain the sales target because of the valence for a good amount of commission.


The extent to which a person believes that his effort will lead to the desired performance is what is called expectancy. In the above example, attainment of a high sales target requires greater efforts on the part of the salesman. However, if a person does not posses the necessary ability to accomplish a task, he will not be able to perform, even if he makes efforts.

The extent to which the first outcome (attainment of sales target in the above example) will lead to the desired second outcome (commission) is what is called instrumentality. Expectancy, on the other hand, is the relationship between efforts made and the first outcome.

The expectancy theory has relevance for everyone in the work place. However, the terms used in the theory may make it difficult for a person to understand its contents and also apply it practically.